Bordon leases on domestic deteriorating in value. if your lease has in the region of 90 years left, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Bordon will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some cases you may not qualify. There are prescribed deadlines and procedures to follow once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Bordon can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Bordon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Eliot, came very close to the 80-year mark with the lease on his basement apartment in Bordon. Having bought his flat twenty years previously, the lease term was of little concern. Luckily, he noticed he needed to take steps soon on Extending the lease. Eliot arranged for a lease extension just under the wire last January. Eliot and the freeholder via the managing agents ultimately settled on the final figure of £5,500 . If the lease had slipped to less than eighty years, the figure would have become more exhorbitant by a minimum £1,100.
Last Winter we were phoned by Dr T Jones , who was assigned a lease of a one bedroom apartment in Bordon in May 1996. We are asked if we could estimate the price would be for a ninety year extension to my lease. Identical premises in Bordon with 100 year plus lease were in the region of £191,000. The mid-range ground rent payable was £65 collected every twelve months. The lease came to a finish on 23 May 2084. Taking into account 58 years unexpired we calculated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 exclusive of legals.
Ms T Bonnet acquired a ground floor flat in Bordon in August 2010. We are asked if we could approximate the price would be for a 90 year extension to my lease. Identical flats in Bordon with 100 year plus lease were in the region of £250,000. The average ground rent payable was £50 collected annually. The lease ran out on 11 July 2095. Considering the 69 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.